How Texas plans to pay for the women’s health program

Texas plans to cover its cost of taking over the Women’s Health Program with funds from a crackdown on Medicaid fraud and services deemed unnecessary; a freeze in administrative positions in health and human services; and savings from eligibility-system changes.

The state also plans to use state money already appropriated for the program before Texas got on the wrong side of the federal government by banning Planned Parenthood and other clinics affiliated with abortion providers, even though the clinics don’t provide abortions.

The ban has been halted by a court order while Planned Parenthood pursues a lawsuit challenging the move.
The state’s decision already has prompted the federal government to say it must end financial support for Texas’ program.

Federal funding, which has paid for 90 percent of the program’s annual cost of about $40 million, will wind down this year.
Gov. Rick Perry promised the health program for low-income women would continue and directed Health and Human Services Executive Commissioner Tom Suehs to find enough state money to make sure that happens.

There’s a caveat, however: the state has said that if it’s forced to include Planned Parenthood in the program, it will have to end the program because state law won’t allow funding to flow to such organizations.

Commissioner Tom Suehs

On the assumption the program will continue, Suehs got approval last month from the Legislative Budget Board and Perry’s office to shift funding within his agency to free up $40.1 million.
Most of that money, $39.1 million, represents state spending in fiscal year 2013, which begins Sept. 1. The state-funded program begins Nov. 1, Suehs said.